Caution Is the Key When Investing
In New Landscape of Hedge Funds

LONDON -- Some New Year's Eve revelers may still be rubbing the sleep out of their eyes, but the hedge-fund industry is off to a rousing start.

News that Moore Capital Management -- one of the last large-scale macro players -- had whittled down its $9 billion (9.48 billion euro) capital base by more than $2 billion began trickling out in late December, providing a perfect close to a year that saw hedge-fund heavyweights George Soros...